TMS Ep 418: IT attrition, Covid-19 wave, ITC stock, heatwave

High attrition rate has been dragging down the profitability of Indian IT companies for the last few quarters. While their efforts to arrest the attrition rate have started showing some results, the recent Q4 numbers of three top IT companies showed that it was still hovering around 20%. So, how are the Indian IT companies dealing with high attrition rates? 

For some IT companies, the attrition rates had shot up to 30% during the pandemic due to increased demand for digitisation. Meanwhile, Covid cases were on the rise till Saturday. The number of fresh cases reported in the seven days ending Saturday was the highest recorded in India in the eight months. This implies that India has just witnessed a Covid wave of sorts. While there may be early signs that the situation is improving, can the country afford to shrug it off? 

Moving on, FMCG major ITC has swiftly extended its bull run on the bourses this year as risks of cigarette taxes remain at bay. So, after doubling investors’ wealth in the last two years, does the stock’s rally have more legs? 

Good Q4 results are taking the heat off the financial markets which has been reeling under pressure for a while now. But there is no let-up outside the plush offices of Dalal Street. Just an hour’s drive from Bombay Stock Exchange, at least 14 people lost their lives due to heatstroke last week. They were attending a government function in Navi Mumbai. Several parts of the country are in the grip of unforgiving heat wave now. This episode of the podcast explains what a heatwave is and more.